Contracts

Contracts Are Necessary In Business

Many years ago I learned about contracts at AT&T where one of my management positions was  Purchasing Supervisor. We ordered goods and services from various suppliers. Among these items were appliances for cafeterias, copy machines, calculators, office furniture, automobiles, service contracts, printing services, etc..

 An Agreement of All The Parties

One day I received a supplier contract which needed legal review and I met with a company attorney. During the next several weeks we hammered out the changes to the contract with a construction company to renovate a cafeteria which included buying and installing new refrigeration equipment, commercial stoves, tables, chairs, etc.

 Modifying the Agreement

The attorney crossed out certain sentences and clauses in the contract, I ask him how difficult it was to adjust a contract. He gave me a few simple rules about contracts. Over the years I’ve added some additional notes here and there:

 -Agreements should always be reduced to written documents; it protects all parties involved. A 'written contract' tends to become all important in the future when disputes arise about what you contracted for. If it is not in writing, it doesn’t count.

 -Always take time to read and understand the contract

 - There are, at least, two parties to every contract. All parties must be satisfied or the contract is not fair.

 - If there is a clause or a set of words that you don’t understand, ask the person who gave you the contract to explain. As he or she is speaking, write down exactly what is said on the contract right above or below the clause in question. Then, neatly cross out the clause or clauses on the contract and initial your correction. Before you sign make sure that you understand all the clauses or they have been adequately explained to you.

 - If you just can’t understand certain words and the explanation doesn’t help you understand, cross them out and initial the change.

 - Never agree to pay the other parties’ legal fees if there is some default on the contract. Don't haggle just cross out all the words referring to this payment. If the other party objects, you may want to rethink the entire deal.

  - If you are still uncomfortable, pay an attorney to read the contract and have him or her insert the proper wording to protect your interests.

 - Always keep a copy of the “signed” contract and file it in a safe place.

One last piece of advice:

-If signing the agreement just doesn’t feel right 'deep in your gut' tear up the agreement  and walk away.

 Armed with this information, I negotiated many contracts in the past 40 years. This coaching helped me as well with my personal purchases and agreements over the years.

Of course, the decision is yours  

                                                                                          RJS